Strategic Bitcoin Accumulation Intensifies as Stock Premiums Crumble
Institutional players double down on digital gold while traditional equities lose their luster.
The Great Rotation Accelerates
Smart money keeps shifting allocations from overvalued stocks into Bitcoin's hardened monetary policy. No fancy algorithms needed—just basic math showing decaying equity risk premiums against sound money.
Wall Street's 'Diversification' Myth
Portfolio managers finally admitting what crypto natives knew for years: 60/40 stock-bond allocations offer false security when both assets dance to the same inflationary tune.
Bitcoin's asymmetric bet keeps attracting capital while traditional finance clings to outdated models that would make even a 2008 Lehman analyst blush.
MSTR’s declining mNAV
While Strategy has continued to accumulate Bitcoin, its market net asset value (mNAV) has fallen to its lowest level since January 2024.
The ratio, which tracks how much of a premium or discount the company’s shares trade at compared with its underlying Bitcoin, has slipped to 1.26x, according to Bitcoin Treasuries data. That marks a sharp decline from the 3.14x level seen in November 2024.
The falling premium points to a shift in investor sentiment. Instead of paying well above the value of Strategy’s coins, shareholders are now pricing the stock closer to its actual holdings.
This decline has also coincided with the current falling value of Strategy’s MSTR stock, which has fallen by over 28% from its July peak of $457 to $327 as of press time.
Notably, the same trend can be observed in other Bitcoin holding companies like Metaplanet.
Standard Chartered analysts point to several factors behind the shift, including a crowded field of corporate treasuries and the growing doubts about aggressive share sales from these companies.
Considering this, the bank warned that the sector will likely consolidate if valuations weaken. In such a market, the stronger firms like Strategy might buy out rivals trading at discounts to further their Bitcoin-focused efforts.
